House prices in cheaper suburbs are tipped to keep rising next year – even as the broader Australian property market slows.
As banks raise their fixed mortgage rates, Westpac is expecting an Australian property slowdown over the next two years.
While prices are set to grow by 22 per cent this year that will slow to 8 per cent in 2022 before falls of 5 per cent are predicted in 2023.
However, discount lender Well Home Loans said outer suburbs and satellite cities should continue to experience growth.
That’s because sale times in these postcodes are decreasing as supply tightens.
Most homes on their top 20 list are affordable for average-income earners who don’t have a six-figure salary, which means they can service the loan without struggling to pay their other bills.
House prices in cheaper suburbs are tipped to keep going up in 2022 even as the broader Australian property market slows. Davoren Park, in Adelaide’s north has a median house price of $284,500 which is less than half South Australia’s median house price of $591,558. Houses in this suburb are selling in 40 days
Ipswich, south-west of Brisbane, topped the Well Home Loans Green Shoots Report list.
Median prices there are also a lot cheaper than greater Brisbane’s median house price of $731,392 in October, CoreLogic data showed.
Prices are also well below the national median property price of $686,339, a point where an average, full-time salary earner on $90,329 a year, with a 20 per cent mortgage deposit, would owe six times their income.
The Australian Prudential Regulation Authority, the banking regulator, considers a debt-to-income ratio of six or more to be mortgage stress.
Deebing Heights has a median price of $424,952 being 47km from the centre of Brisbane, with homes typically sold in 51 days in October compared with 60 days three months earlier.
Nearby Springfield came second with a mid-point house price of $536,000, with houses here sold in 39 days instead of 51.
Jimboomba, in the neighbouring Logan council area, came third with a median house price of $457,435 and a median sale time of 47 days, down from 58 days.
Satellite cities of Brisbane took out the top three spots, with Adelaide having three places on the top ten list compared with one for outer Melbourne and another for Sydney’s outer south-west.
Regional areas in Victoria and New South Wales each had a spot.
Davoren Park, in Adelaide’s north, was fourth on the list, with a median house price of $284,500 which is less than half South Australia’s median house price of $591,558.
Houses in this suburb are selling in 40 days.
Ipswich, south-west of Brisbane, topped the Well Home Loans Green Shoots Report list. Deebing Heights has a median price of $424,952 being 47km from the centre of Brisbane, with homes typically sold in 51 days in October compared with 60 days three months earlier
Melbourne also had an affordable suburb with Melton South, 37km west of the city, having a median house price of $470,000, which is less than half the Victorian capital’s mid-point of $972,659 for a detached home. Houses in this suburb are selling in 34 days, down from 36 days in August
Melbourne also had an affordable suburb with Melton South, 37km west of the city, having a median house price of $470,000, which is less than half the Victorian capital’s mid-point of $972,659 for a detached home.
Houses in this suburb are selling in 34 days, down from 36 days in August.
Sydney scraped into the top ten list with Denham Court, 44km south-west of the city centre, having a median house price of $845,000.
While dearer than the others on the list, this is well below the Sydney median of $1.334million and is more affordable than the Central Coast’s $954,300 in an area that is more than 80km from central Sydney.
Houses here are also selling in 33 days, down from 35.
Sydney scraped into the top ten list with Denham Court, 44km south-west of the city centre, having a median house price of $845,000
Westpac is expecting national property prices to grow by 22 per cent this year before slowing to 8 per cent next year as the banks raised their fixed mortgage rates
Well Home Loans chief executive Scott Spencer said families were increasingly looking for houses available for less than seven figures.
‘The Well Home Loans Green Shoots Report doesn’t actively search for affordable locations, but, in a nice coincidence, most of the suburbs on this list would be accessible to the average family, with asking prices ranging from less than $300,000 to just under $900,000,’ he said.
Mr Spencer said fewer days on the market meant prices were more likely to rise in 2022.
‘The key leading indicators are inventory levels and days on market, which tell you about the balance between supply and demand,’ he said.
‘When those two indicators are falling, it means buying conditions are becoming harder, which suggests prices are likely to rise in the months and even years ahead.’
Australia’s biggest banks Commonwealth and Westpac last week raised their fixed mortgage rates and Reserve Bank of Australia Governor Philip Lowe hinted the cash rate could be raised, from a record low of 0.1 per cent, in 2023 instead of 2024.
The Well Home Loans top 20 list included had just two entrants for units.
Darwin city came in at No.15 with a median price of $425,700, with apartments in the tropical Top End typically selling in 54 days, down from 64.
Sorell, in Hobart’s north-east, was 19 on the list with a mid-point apartment price of $410,000 and selling time of 49 days, a dramatically decrease from 109 days as recently as August.